The education level in a country creates opportunities for future development, both for society as a whole and for the individual. In developing countries education is therefore often mentioned as an important determinant of economic growth in the future. Tanzania is among the countries in the world that have the lowest net enrolment rates. Furthermore, the educational sector struggles with problems such as, lack of qualified teachers, books, school buildings etc. A majority of the children in primary school fail the national exam that is given to them after seven years in school. To be able to examine the advantages and disadvantages of further education this thesis has employed human capital theory. According to this approach education should be seen as an investment in human capital. In order to understand individuals’ choices between continued education and regular work it therefore becomes important to identify the full range of future benefits and costs of education. By examining what young people in a developing country think about the costs and benefits of education a field study was conducted in Tanzania. 36 students were interviewed about their education, future and also about the possible impact that HIV/AIDS will have on the educational sector in the future. The paper concludes that the big obstacle in getting an education was the financing of it: even if it was clear that the future benefits were many. The benefits of education were the possibility for a better life in the future, high wage, better self-confidence and the possibility to contribute to the development of the Tanzanian society.